Monday, April 21, 2014

The American Association of
Advertising Agencies has recently
released its 2014(attached) effectiveness study, looking at the transformation of
agencies from the eyes of both the clients and agency partners.

The study pulls out data for media
versus creative agencies as well as over-performing agencies, that is those
that self-reported a greater than 10% year-over-year growth over the past three
years (the report refers to non over-performing agencies as “the rest”).

New agency revenue streams were
seen as a top trend for agencies overall (at 28%) but came in dead last for
brands, with only 3% of respondents saying it was something that would
influence an agency’s future.

However, the secret to long-term
growth may be in that new revenue stream, the study found: over-performing
agencies were more likely to focus on these new revenue streams, with 35%
naming it a top trend that will impact the agency’s future, compared to 24% of
“the rest.”

Media agencies placed ROI (60%), big data (68%) and new revenue streams
(38%) as most important to long-term growth,
echoing these over-performing shops, in their top three trends shaping the face
of agencies.

Clients have doubts about agencies’ data and analytic capabilities,
with only 35% saying partners have the right data and analytic tools available
to measure effectiveness. Media agencies are
confident in their ability to lead the way when it comes to big data – with 68%
believing their agency has “the tools available to measure effectiveness” and
that “big data helps demonstrate the value of creative ideas” (compared to 45%
and 46%, respectively at creative shops).

Media agencies are also more
aligned with client demand when it comes to measurement, with 52% saying they look at sales or
profit levels to determine campaign success (compared to 34% at creative
shops). Creatives put the
most focus on consumer engagement at 46%.

Brand strategy and brand
positioning provided the greatest disparity between media agencies and creative
shops, with creative
placing more importance on branding than media shops, which placed the bulk of
their interest on data insights.

The study polled 725 people (409
agencies, 247 brands) in a quantitative study, and conducted almost 200
qualitative interviews, with largely manager or higher-level employees across a
wide swath of industries.

Wednesday, April 16, 2014

According to the Piper Jaffray 27th semi-annual “Taking Stock
With Teens” market research project, teenspending
contracted just 1% from the Fall of 2013, compared to more substantial declines
previously. Across both the upper and average income groups, teen male spending is up 4% from
Fall 2013. This compares to continued mid-single digit declines among
females.

Overall, the report notes that parent contribution to teen spending bounced back to the
65% of spend range, following a period of contraction. Teen unemployment
remains elevated, but off of peak levels. Time priorities have shifted, showing
that advanced placement courses are the norm. Year-round single
sport/activities are more common, and school years are starting earlier and
ending later (shortening the opportune summer employment period).

A quick snapshot of the survey results, including fashion, beauty
and personal care, restaurants, digital media, gaming, and wireless
communication includes the following:

Teen males indicated they were spending more, which has
historically signaled inflection in broader spending

For the first time in the survey history, food exceeded clothing as
a percentage of the teen spending. Electronics also gained in share, while
furniture and fashion lost modest share.

Declines in the fashion category were most severe in accessories,
down double-digits for a second cycle in a row

17% of teens
expressed interest in an Apple iWatch, up 12% from Fall 2013, anindication of consumer appetite

Instagram ranked as the most important social network, exceeding
Twitter and Facebook for the first time in survey history

Cable subscriptions are becoming less essential for
teens at home, while
online streaming is more critical. Out of home, IMAX continues
growing share among teens

Music/radio listenership has grown for Pandora and local radio,
largely at the cost of MP3s and CDs

Influences remain consistent, with friends dominating both upper
income and average income. followed by the Internet, says the report. The
Internet first displaced television as the No. 2 influencer with teens in the
Fall 2010 survey, and the report indicates that this uptrend will likely
continue as social networking and online shopping drive teens online. Instagram
and Twitter are the two most used social media sites, as teens are increasingly
visual and sound bite communicators.

Social
Network Utilization by Teens (% of Respondents)

%
of Respondents/Most Important

Year

Instagram

Twitter

Facebok

Fall,
2012

12%

27%

42%

Spring,
2013

17

30

33

Fall,
2013

23

26

23

Spring,
2014

30

27

23

Source:
Piper Jaffray, April 2014

More complete information about individual categories is also
included:

The teen food category represents restaurants and dining out. The
study uncovered a modest increase in spending devoted to events (including
concerts, festivals, etc.). Within the fashion category, clothing increased
modestly at the expense of footwear and accessories. In addition, there has
been a continuation of a lifestyle/participation-based trend in athletic
fashion. These data points are evidence of a trend toward experiences versus
items worn, and a notable shift in perceived status spending.

Key findings from the survey in fashion, beauty and personal care,
restaurants, digital media, gaming, and wireless communication include the
following:

Within the fashion category, says the report, the
declines were most severe in the accessories classification, down
double-digits across genders and income classes for a second cycle in a
row. Spending on apparel stabilized at flat for upper income teens and
down 2% for average income teens. Spending on accessories declined 22%
among upper income and 26% among average income teens on a year over year
basis

Shopping frequency has declined from a peak rate of 38
trips/year to 29 trips/year (one every 1.75 weeks). Fall 2013 appears to
have marked the low point at 28 trips. Mall traffic in the teen space has
declined 30% cumulatively in the last 10 years. Teens are browsing more
often via their mobile devices, shopping with purpose (conversion rates
are up), buying when they have a real or perceived need, and visiting the
mall less for entertainment value

Teens prefer off-price
venues to traditional department stores for their fashion needs, and are
increasingly shopping online and on their phones. When asked about preferences
between shopping in store and online, about three-quarters of the females
polled prefer stores over sites, but the males are closer to a fifty-fifty
split. Moreover, when asked about preferences between pure play e-commerce
sites and sites associated with stores when shopping for clothing, only
14% of females and 24% of males prefer the pure play e-commerce sites

Across both upper income and average income sub-sets,
the top five preferred clothing brands were consistent to the prior year
and prior season, but rank and share shifted slightly. In the upper income
group (teens that tend to be trend leaders), Action Sports Brands ceded
share as Forever 21 gained share. Within Action Sports Brands, teens
listed 29 unique lifestyle brands, evidence of extended boundaries around
the core lifestyle aesthetic into areas of streetwear, urban and
culturally inspired trends

The report concludes by noting that survey results point to four
distinct fashion themes: stability in demand for Action Sports Brand;
moderation in Fast Fashion preference among teen girls; cresting of the refined
classic cycle, and evolving demand for fashion athletic brands. In addition to
these trends, an increasingly active teen is catering to growing demand for
performance athletic brands.

Clear Channel has revealed the
results of a new national study of the role of radio and the unique connection
between radio personalities and listeners in a digital and social
media-oriented world. The study's findings showed that radio is a far more powerful
social force than ever before, particularly because of the conversations fueled
by air personalities and the connection listeners feel to air local and
national talent like Ryan Seacrest, Sean Hannity, Delilah and Bobby Bones.

Key findings included:

When
comparing radio personalities to other media personalities, 6 out of 10
listeners said that radio hosts are "like a friend," whose
opinions they trust.

With
even more ways for consumers and air personalities to interact, 4 out of
10 listeners feel personalities make more of an effort to foster a
personal connection, making the radio experience inherently more social,
particularly when compared to TV or streaming playlist services.

Listeners
equate an air personality endorsement to a friend's recommendation, more
so than they do sponsored Facebook posts, sponsored tweets or television
commercials.

More
than half of the study participants agreed that they trust brands,
products and services their favorite on air personality recommend, a
finding that is encouraging smart marketers to undertake unique
radio-based campaigns.

These
findings were borne out by specific examples, including:

T-Mobile recently partnered with
CCM+E in an innovative campaign that included a full-day takeover of Clear
Channel's radio stations in 18 markets, all facilitated by local on air
personalities. After the campaign, recall had increased by over 100 percent and
purchase intent grew by 33 percent.

Nationally syndicated host Delilah,
the most listened-to woman on radio in the U.S., voiced a campaign for Chase's
Blueprint service that increased awareness by 26 percent. In addition, a third
of all listeners said they were likely/somewhat likely to get a card after the
campaign, nearly doubling the intent number.

"Air personalities are a key
element in defining what makes radio different -- and more personal -- than any
other medium in consumers' minds," said Clear Channel Chairman/CEO Bob
Pittman. "These personalities are viewed as stars and tastemakers -- but
also have a familiarity and personal touch that invites listeners not only to
tune in, but to call, tweet and email as if they are listeners' personal
friends. It's a powerful relationship, one that has deep implications for smart
marketers who recognize that when Ryan Seacrest, Elvis Duran, Delilah, Bobby
Bones, and hundreds of other personalities offer an endorsement -- whether of a
song, a brand or a product -- listeners take it to heart, and take action. No
other medium has this power."

The study also found that 6 out of
10 American listeners have a favorite personality who they look forward to
hearing in the morning. 7 out of 10 participants said they consider these
personalities to be regular people like themselves, who are
"relatable" and "authentic," and many have remained loyal,
listening to the same personality for years.

The vast majority of Americans have
interacted with radio personalities during their lifetimes -- 8 out of 10 have
called into a station, met a DJ in their community, or interacted in some other
manner. And the growing social media landscape provides even more opportunities
for listeners to connect with their favorite radio personalities -- according
to the research, about 6 out of 10 of listeners have also engaged with radio
through social media platforms.

"This research illustrates the
exceptional connection consumers have always had with radio and its
personalities," said CCME Executive VP/Insights, Research and Analytics
Dr. Radha Subramanyam. "Air personalities have a unique, two-way relationship
with listeners, one that engenders comfort, trust and admiration." Dr.
Radha Subramanyam Other key findings of the research include:

47
percent of listeners active on personality/radio station social media
feeds said they feel more connected to their favorite personalities
because they can interact through social media.

Consumers
with strong parasocial relationships are more likely (by a margin of 20
percentage point or more) to recall, seek more information about, purchase
and recommend brands, products and services endorsed by radio's air
personalities.

Personality
endorsements are more likely to incite participants to take action,
according to more than half of participants, when compared with nine other
messaging/advertising approaches, including: website ads, sponsored posts
on Facebook, mobile display ads, sponsored texts or tweets, or emailed
product/service pitches, among others.

More than 6
out of 10 listeners are specifically likely to talk about things air
personalities have said, often through their social media networks, furthering
extending the reach and impact of personality endorsements. Dr. Radha
Subramanyam The research results were reported by Dr. Subramanyam, and were
based on a study CCME conducted in conjunction with the University of Southern
California, which surveyed 2,700 respondents. The report also includes insights
from an additional online survey of over a thousand respondents, as well as
from live focus groups, ethnographies, listening logs, digital assignments and
conversations with air personalities from across the country.

Wednesday, April 9, 2014

ZenithOptimedia has adjusted its ad
spend forecast upwards, predicting that the global market will grow by 5.5% in
2014, reaching $537 billion by the end of the year. That forecast is up 0.2% from
the last report in December. Ad spend in North America is expected to grow
by 4.8% this year, bolstered by the Winter Olympics and mid-term elections.

Ad spend in Canada is expected to grow by 3.5% in 2014 versus 2013,
with larger gains expected in 2015 and 2016.

The internet is the fastest growing
medium measured on the global market, and is expected to increase by an average
of 16% each year between 2014 and 2016. Display is the fastest growing sub-category,
with 21% annual growth, due in part thanks to the rise of social media
advertising, which is growing at 29% a year. Online video is expected to grow
at 23% per year for the next three years.

Mobile advertising is growing six
times faster than desktop, and is forecast to grow at a pace of 50% annually
from 2014 to 2016. In contrast, advertising on desktop is forecast to grow at
8% per year in that time period.

Despite the internet’s speed of
growth, TV remains the dominant ad platform, accounting for 40% of all ad spend
in 2013, almost twice of what internet advertising takes up (21%). TV ad spend
is expected to grow 5.2% in 2014, benefiting from things like the Winter
Olympics, World Cup and mid-term US elections.

Canada is number nine in the top 10
ad spenders globally, with $11.57 billion for 2013. The US is #1, with $167.29
billion.

In Canada, the internet took up the biggest piece of the advertising
pie in 2013, with 30.8%, followed by TV with 30.4%.